WASHINGTON (AP) — The Senate is expected to approve legislation on Tuesday that would regulate a form of cryptocurrency called stability, the first wave of crypto legislation in Congress, which hopes the industry hopes it will enhance its legitimacy and relax consumers.
Fast moving legislation to the House for potential revisions, following the 2024 campaign cycle, the cryptocurrency industry ranks among the country’s highest political spenders Its influence continues to grow in Washington and beyond.
eighteen Democratic Senator Support for the legislation was shown in the Republican majority in the 53-47 Senate. If passed, it will become the second bipartisan main bill this year, after which Lake Riley Act Immigration law enforcement in January.
Still, most Democrats oppose the bill. They have raised concerns that the measure would not help President Donald Trump’s personal financial interests in the cryptocurrency space.
Monday, D-Md. “We certainly can’t include everything we want, but it’s a good bipartisan effort,” said Senator Angela Alsobrooks, adding: “This is an unregulated area and will be regulated now.”
The bill, known as the Genius Act, will establish guardrails and consumer protections for Stablecoins, a cryptocurrency that is often pegged to the dollar. The acronym stands for “Guide and build national innovation for stable America.”
It is expected to pass on Tuesday as it only requires a simple majority vote – and has cleared the biggest procedural hurdle last week with a 68-30 vote. But the bill’s resistance is higher than initially expected.
There is a provision in the bill that prohibits members of Congress and their families from profiting from Stablecoins. But even if Trump established a crypto empire from the White House, the ban did not extend to the president and his family.
Last month, Trump hosted a private dinner at his golf club in Virginia, with top investors in the Trump-branded meme coins. His family owns important shares World Free FinanceThis is a crypto project that launched its own Stablecoin, USD1.
According to a public financial disclosure released Friday, Trump reported that he earned $57.35 million in token sales in 2024. The meme coins associated with him are estimated to incur $320 million in fees, although the proceeds are distributed among multiple investors.
The government supports the growth of cryptocurrencies and its integration into the economy widely. Treasury Secretary Scott Bessent said last week that the legislation could help push the U.S. stable market to $2 trillion by the end of 2028.
Coinbase CEO Brian Armstrong is the largest crypto exchange in the United States and a major advocate of the bill – meeting with Trump and praising his early actions on cryptocurrencies. Over the past weekend, Coinbase was one of the more prominent brands to mark the Army’s 250th anniversary in Washington, an event that coincides with Trump’s 79th birthday.
But the cryptocurrency industry stressed that they viewed legislative efforts as bipartisans, pointing out advocates on both sides of the aisle.
Senate Banking Committee Chairman Tim Scott (RSS C.) “It’s a product of months of bipartisan work.”
The bill did get into a tough situation in early May, when a group of Senate Democrats previously supported the bill to turn the course and voted to stop it from moving forward. This prompted Senate Republicans, Democrats and the White House to engage in new talks, eventually producing a compromise version expected to win passes on Tuesday.
“There are many, many changes. Ultimately, it’s a better choice because we’re all on the table,” Alsobrooks said.
Nevertheless, the bill remains concerned that the president’s conflict of interest remains unresolved – a problem that remains the source of tensions within the Democratic Caucus.
D-Mass. Senator Elizabeth Warren has been one of the most outspoken members of the Senate Banking Committee, warning that the bill created a “super highway” for Trump’s corruption. She also warned that the bill would allow large tech companies such as Amazon and Meta to launch their own stable companies.
If stability legislation passes through the Senate on Tuesday, there are still several obstacles to reaching the president’s desk. It must clear the narrow Republican majority in the House, and lawmakers may try to bring a broader market structure bill that could make the Senate pass more difficult legislation.
Trump said he hopes to legislate at his desk before Congress takes a break for his August recess (now only 50 days away, he is)
